MILAN — Bulgari SpA said Thursday it would likely reach its double-digit profit target for 2007, after beating full-year revenue forecasts.
"We should get there," Bulgari chief executive officer Francesco Trapani told WWD, referring to the profit target of about a 12 percent increase at constant exchange.
For the year ended Dec. 31, Bulgari's sales climbed 8.2 percent to 1.09 billion euros, or $1.49 billion at average exchange, exceeding company forecasts by nearly 2 percent at constant exchange. Fourth-quarter revenues increased 7.4 percent to 347.7 million euros, or $503.5 million, although a drop in accessories sales and a sluggish Japanese market penalized growth.
Trapani said Bulgari saw "no signs of a slowdown." Also, he was not worried about the share price, which has lost almost 20 percent this month.
"The company is doing some very positive things that put it in a position of strength," Trapani said. "The financial markets don't listen to reason."
However, he added the uncertain macroeconomic environment and market volatility would force Bulgari to refine its 2008 guidance on March 11, when 2007 profits are released.
Bulgari released the sales figures after the end of trading on the Italian stock market Thursday. The company's stock closed down 0.5 percent to 7.73 euros, or $11.42.
Fourth-quarter sales of jewelry, Bulgari's core business, rose 14.3 percent to 148.3 million euros, or $214.7 million, which the company described as "outstanding."
Difficulties in sourcing technical components dented watch revenues, Bulgari said, although sales still increased 2.6 percent to 91.4 million euros, or $132.3 million. The company highlighted "the excellent sales" of the "Assioma D" women's model.
Perfume sales climbed 10 percent to 76.9 million euros, or $111.4 million.
Accessories revenues dropped 7.6 percent to 24.3 million euros, or $35.2 million. Trapani blamed the drop on wholesale channels and Japan, Bulgari's most important market for the product category.
Trapani said Bulgari was upgrading its accessories range in terms of quality and price and that sales were "very strong" via retail channels. He added revenue growth for the product category outside of Japan was double-digit, "super aggressive in all countries," and accelerated over the Christmas period.Bulgari's fourth-quarter sales in Japan dipped 2.9 percent to 74.5 million euros, or $107.8 million, due to the euro-yen exchange rate. At constant exchange revenues climbed 4.5 percent.
The company opened two major stores in Tokyo in November, including the 10-floor Ginza tower. Trapani hoped these two units would boost revenues in the region this year.
Trapani added Bulgari would introduce a limited edition range of diamond engagement rings this year, exclusive to Japan.
In Europe, fourth-quarter revenues climbed 10.5 percent to 144 million euros, or $208.5 million, while dipping less than a percent in Italy. Although a strong euro bit into sales in the Americas, revenues there advanced 2.9 percent to 52.8 million euros, or $76.5 million. At constant exchange they grew 13.5 percent.
Sales in Asian countries excluding Japan gained 15.5 percent to 59.4 million euros, or $86 million. In the Middle East and the rest of the world they climbed 22.4 percent to 17 million euros, or $24.6 million.
Taking the final spot on the mens’ portion of New York Fashion Week calendar next month will be none other than @tomford. Though he’s shown his men’s wear in New York in the past, this will mark the first time the designer has shown his men’s collection alone during New York Fashion Week: Men’s. His runway show will debut on February 6 at the Park Avenue Armory. #wwdfashion
London-based couture house @ralphandrusso has certainly been in the spotlight, having its dresses worn by @beyonce, Angelina Jolie, Meghan Markle in her engagement photos and more. For couture, Tamara Ralph focused on ornamentation — think: feathers with chain mail, jet embroidery and clusters of pearls and crystals. See the rest of the collection on WWD.com #wwdfashion #couture (📷: @giovanni_giannoni_photo)
Minnie Mouse celebrated her 90th birthday by getting her own star on the Hollywood Walk of Fame. For her celebratory luncheon, @coach’s creative director @stuartvevers dressed her in a custom made prairie dress, complete with Vever’s take on the polka dot – black sequined versions – under a cropped motorcycle jacket. The designer also put his own mark on Minnie’s classic red shoes, infusing the color with sparkles and adding some Coach crystals. “We chose colors that were very Minnie and also represented quintessential Coach elements,” said Vevers. #wwdfashion #nationalpolkadotday (📷: George Chinsee)
@nickjonas is unveiling his first-ever apparel collection through a partnership with John Varvatos. The limited-edition capsule, which makes its debut in spring, also marks the first time the designer has collaborated with anyone on a line. “The process in working with Nick is amazing. It’s inspiring to be around someone who is not only connected with the trade that they do, but also with what’s happening in the environment around him, and how that connects to what we do with style,” said Varvatos. (RG: @johnvarvatos) #wwdfashion
@margotrobbie steps out onto the red carpet wearing @miumiu. The actress is nominated for “Outstanding Performance by a Female Actor in a Leading Role” in “I, Tonya” at the #SagAwards. (📷: Stewart Cook) #wwdfashion
For @massimogiorgetti of @msgm, the Nineties are his favorite decade. “They had a huge impact on my personal growth. What I like of the Nineties is that they are not so precise in terms of style as other decades…there was actually a bit of everything,” he said. As seen on MSGM’s Spring 2018 show: tie-dye and a bit of grunge, two styles that are synonymous with the decade #wwdfashion #wwddecades (📷: @kukukuba)